Aviation Sales Co. third-quarter revenues increase 37%.MIAMI--(BUSINESS WIRE)--Nov. 6, 1996--Aviation Sales Co. (NYSE NYSE See: New York Stock Exchange :AVS (Audio Video Coding Standard) A video compression technique developed by Chinese companies and supported by the Chinese government. Expected to provide better compression than MPEG-2, AVS was created to avoid paying royalties to the MPEG licensors, which are outside ) Wednesday Wednesday: see week. announced that third-quarter operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. rose 37.2% to $39.5 million, compared with $28.8 million for the same period last year. Pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per share before extraordinary charges were $0.38 per share for the third quarter 1996, compared with $0.23 per share for the third quarter 1995. Operating revenues for the nine months ended Sept. 30, 1996, increased 24.1% to $106.7 million, compared with $86.0 million, for the same period last year. Pro forma earnings per share before extraordinary charges were $1.12 for the nine months ended Sept. 30, 1996, compared with $1.08 for the nine months ended Sept. 30, 1995. Gross profit increased to $12.8 million for the quarter ended Sept. 30, 1996, compared with $10.0 million, for the same period last year. Gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. declined to 32.4% for the third quarter 1996, from 34.7% for the same period in 1995, due to a change in mix of inventories sold during the periods. Gross profits in 1995 were significantly impacted by the bulk inventory acquisition of the Aviation Sales business unit from Aviall Services Inc. During 1996, the company has not completed a comparable bulk inventory acquisition and accordingly, gross profits have not been impacted in a similar manner. "The third quarter was an important quarter for the company," said Dale S. Baker, chairman and chief executive officer. "The company continued to gain momentum as we completed our initial public stock offering as well as the acquisition of the aircraft bearings distribution business from Dixie Dixie popular name for Southern states in U.S. and for song. [Am. Hist.: EB, III: 587] See : Southern States Bearings Incorporated during this quarter. The Dixie Bearings acquisition represents a significant expansion of the company's distribution network to include new aircraft parts which establishes a critical business leg for our future growth." The company's operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased $0.9 million from the third quarter of 1995 to the third quarter of 1996. Operating expenses as a percent of operating revenues declined from 21.1% of revenues for the third quarter of 1995 to 17.7% for the third quarter of 1996. Operating expenses were $17.7 million for the first nine months of 1995, or 20.6% of operating revenues, compared with $20.1 million for the first nine months of 1996, or 18.8% of operating revenues. The increase in absolute dollars from the first nine months of 1995 to the first nine months of 1996 is due to higher selling and operating expenses as a result of the higher sales levels achieved during the first nine months of 1996 compared to the first nine months of 1995. Lower operating expenses as a percentage of operating revenues reflects the continuing benefits of economies of scale. During 1996, the company recorded a one time income tax benefit of $4.9 million associated with the formation of the company. Additionally, as a result of the completion of the initial public offering and the use of the proceeds therefrom there·from adv. From that place, time, or thing. Adv. 1. therefrom - from that circumstance or source; "atomic formulas and all compounds thence constructible"- W.V. for the repayment of indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. due to certain financial institutions, the company recorded an extraordinary adjustment net of taxes during the third quarter of 1996 of $1.9 million to write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. deferred financing costs associated with the debt that was repaid. Aviation Sales Co. is a recognized worldwide leader in the aircraft spare parts Spare parts, also referred to as Service Parts is a term used to indicate extra parts available and in proximity to the mechanical item, such as a automobile, boat, engine, for which they might be used. Spare parts are also called “spares. redistribution re·dis·tri·bu·tion n. 1. The act or process of redistributing. 2. An economic theory or policy that advocates reducing inequalities in the distribution of wealth. market, selling parts for Boeing (language) BOEING - An early system on the IBM 1130. [Listed in CACM 2(5):16, May 1959]. , McDonnell Douglas McDonnell Douglas was a major American aerospace manufacturer and defense contractor, producing a number of famous commercial and military aircraft. It merged with Boeing in 1997 to form The Boeing Company. , Lockheed “Lockheed” redirects here. For the character in Marvel Comics, see Lockheed (comics). For the current company, see . Lockheed Corporation (originally Loughead Aircraft Manufacturing Company) was an American aerospace company originally founded in 1912 and Airbus aircraft, and Pratt & Whitney, General Electric and Rolls Royce Rolls Royce the millionaire’s vehicle. [Trademarks: Brewer Dictionary, 928] See : Luxury jet engines. Offering inventory management services, including purchasing services, repair management, warehouse management, aircraft disassembly dis·as·sem·ble v. dis·as·sem·bled, dis·as·sem·bling, dis·as·sem·bles v.tr. To take apart: disassemble a toaster. v.intr. 1. services and consignment The delivery of goods to a carrier to be shipped to a designated person for sale. A Bailment of goods for sale. A consignment is an arrangement resulting from a contract in which one person, the consignor, either ships or entrusts goods to another, the and leasing of aircraft spare parts, Aviation Sales Co. is a leader in Total Inventory Solutions designed to meet the diverse needs of its customers. -0-
Financial Data (unaudited)
Condensed Statement of Income
Aviation Sales Co. and Subsidiaries
Periods Ended Sept. 30,
Three Months Nine Months
Millions, except as noted 1996 1995 1996 1995
Operating Revenues $ 39.5 $ 28.8 $ 106.7 $ 86.0
Cost of Sales 26.8 18.8 71.0 53.2
Gross Profit 12.8 10.0 35.7 32.8
Gross Margin 32.4% 34.7% 33.5% 38.1%
Operating Expenses
Operating, Selling
& Administration 6.4 5.7 18.5 16.6
Depreciation & Amortization 0.6 0.4 1.6 1.1
Total Operating Expenses 7.0 6.1 20.1 17.7
17.7% 21.1% 18.8% 20.6%
Income from Operations 5.8 3.9 15.6 15.2
Interest Expense and Other 0.8 2.0 4.5 6.3
(Benefit) for Income Taxes (1.9) 0.0 (2.7) 0.0
Income Before Extraordinary Item 6.9 1.9 13.8 8.9
Extraordinary Item, Net of Taxes 1.9 1.9
Net Income $ 5.0 $ 1.9 $ 11.9 $ 8.9
Earnings Per Share:
Income Before
Extraordinary Item $ 0.86
Extraordinary Item,
Net of Taxes 0.23
Net Income $ 0.63
Pro Forma Earnings Per Share: (1)
Pro Forma Income Before
Extraordinary Item $ 0.38 $ 0.23 $ 1.12 $ 1.08
Extraordinary Item,
Net of Taxes 0.23 0.31
Pro Forma Net Income $ 0.15 $ 0.23 $ 0.81 $ 1.08
Average Common
Shares Outstanding 8.00 5.00 6.01 5.00
Common Stock Prices, per share
High 21 1/2 - 21 1/2 -
Low 18 - 18 -
Quarterly Close 19 1/4 - 19 1/4 -
Average Daily Trading Volume,
thousands of shares 18.9 18.9
(1) Pro forma adjustments as if the company had been taxed as a
C-corporation since the beginning of the applicable period.
Condensed Balance Sheet
Aviation Sales Co. and Subsidiaries Sept. 30, Dec. 31,
Millions, except as noted 1996 1995
(unaudited)
Assets
Current Assets
Cash and Equivalents $ 1.4 $ 0.2
Accounts Receivable, net 33.0 23.8
Inventory 63.2 49.0
Prepaid Expenses 0.7 0.1
Total Current Assets 98.3 73.1
Spare Parts on Lease, net 17.5 11.7
Property, Plant and Equipment, net 2.3 1.9
Amounts due from Affiliates 3.0 3.0
Deferred Taxes 4.9 -
Other Assets 1.3 3.6
Total Assets $ 127.3 $ 93.3
Liabilities and Shareholders' Equity
Current Liabilities
Accounts Payable and Accrued Expenses $ 19.6 $ 16.3
Current Maturities - Bank Debt 12.6 10.0
Total Current Liabilities 32.2 26.3
Deferred Revenue 0.9 0.9
Notes Payable - Long Term 16.7 52.0
Partners' Capital - 14.1
Shareholders' Equity 77.5 -
Total Liabilities
and Shareholders' Equity $ 127.3 $ 93.3
CONTACT: Aviation Sales Co., Miami Dale S. Baker, Chairman and Chief Executive Officer 305/599-6619 or Joseph E. Civiletto, Chief Financial Officer 305/599-6693 |
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